Hi guys, just wanted to share a few tools and things to consider when deciding whether buying a home (or any investment, really) is a good investment for you: 1. The research I shared is from Nobel Prize winner Yale Economist Robert Shiller. I've linked sources in the description for your reference. He pulled U.S. housing data dating back from the 1890s to 2012 and discovered that house prices, after inflation, saw no price increase. Based on his findings, housing price increases were often due to housing bubbles/fads/trends that would eventually pop. 2. Break-even analysis: This helps you determine how many years it will take for you to "break-even", aka make back your full investment. You want to divide the total investment cost by the annual income (either profit from renting and/or savings from rent) the home is expected to generate each year. The only thing is, you also want to account for inflation- people often don't take into account inflation when they do this. In your forecasting of expenses, make sure you also factor in inflation (i.e., 2.5-3% would be a conservative annual increase, based on past average annual CPI, consumer price index). 3. If you've already bought a home, you want to check if you've profited after inflation: you could use the CPI as reference - it's published online via government sites and updated on an annual basis. You want to cross-check the CPI factor the year you bought the home and sold it with your home price bought and sold. 4. Someone mentioned how a home is an investment if they want to pass on this property to their kids/future generation. That sounds like you're giving a gift and sure, that could be an investment for your future generation. You might want to just consider whether it's more profitable to pass down a stock market portfolio or a home, after accounting for inflation and taking into consideration the time + energy for the home. 5. Lastly, we all have different situations, lifestyles, we're living in different places. I'm not saying you can not profit from a home. Sure, you can fix up a home and then sell it for a higher price in a short period of time (I wouldn't call this a passive investment then - it seems like earned income to me). You can get lucky and sell off during a housing fad (according to Schiller's work, a lot of the prices go up during housing bubbles). I recognize that some people might also feel safer putting their money into a physical property. If that makes you sleep better at night, then go for it. In the end, I just want to share my perspective and learnings. You get to make the right moves for yourself. Hope this helps clarify things!

I think the problem isn't that you purchased a home. The problem is that you bought a condo that was too expensive, and on a variable rate mortgage. This is very different from buying a house on a lot with a fixed rate mortgage.

@FelipeGutierrez-me9th

29 күн бұрын

Yup, I'm talking w/ my parents to help me buy a house o apartment and they said the most important thing is the contract which include those things you mention, also it is very important to have a house insurance if in commercial use

@shroomer3867

29 күн бұрын

I was really stumped when she said 1.5%, then realized that it's a variable one and they changed it up to 5.7%. It's still cheaper than an average APR of 7-8% right now but still the fact that they can just change it up on you is horrible

@MrJasonthq

27 күн бұрын

Yea i was confused about the rate change! I bought mine at similiar time at 2% rate for 30 yrs and I’m fine

@sippininthekitchen2208

22 күн бұрын

Exactly. Just the $6,600 a year condo fees alone is insane.

@YochanaIrie_FineAppleStylez

21 күн бұрын

I will note, that being a person that did not buy a condo but instead of pre-existing home on a fixed rate mortgage… My monthly payments still went up because of taxes. And it went up by $500. So even with a fixed rate mortgage, your monthly payment can still increase. And I am not in a fancy part of town. 🤦🏾‍♀️🤦🏾‍♀️🤦🏾‍♀️ I feel like homeownership isn’t for young single people, it definitely is something that single people should potentially wait on unless they have children or something like that.

I’m in Florida and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

@StellaMaris-lv2uq

Ай бұрын

A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

@maryHenokNft

Ай бұрын

You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.

@maryHenokNft

Ай бұрын

*Gertrude Margaret Quinto* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

@TheresaAnderson-kf5xw

Ай бұрын

Thank you, I copied and pasted his name on web browser and sent a email waiting for reply.

@Don-po8vl

27 күн бұрын

That happens when there is so much money created and needs a place to go too.

I closed on my 11th rental condo a year ago, the repairs and maintenance fees were no joke. Personally, I shifted focus from real estate to alternate investments 2 years ago, the result was $1.3m returns in the first 11 months. It really built my confidence in making decisions

@VeeruDono

24 күн бұрын

to be realistic, Luck plays a significant role more-so than the resources to thrive with investing. without it, it's very challenging to succeed

@DaliTaliani-wz4ti

24 күн бұрын

when its consistent, its not considered luck. I attribute this to research which was the challenging part before it led me to Emily Ava Milligan, a top fund manager, in turn she made 310k into this and counting

@VeeruDono

24 күн бұрын

after I pasted her name into my browser, her page was the first thing i found. from our interaction It's clear she's in high demand. Your example is rare. I wish i had it earlier to reference. thanks

Here I am in my early 30s regretting not buying a home when I was 23, instead i used my salary to pay off undergrad loans and pay for grad school tuition. And the target neighborhoods i could have afforded when i was 23 grossing $50,000 have gentrified to heck and i can't afford them today on my current $130,000 gross income. hindsight is 2020.

@bdaddy503

24 күн бұрын

There's no need to regret it it. There's no way you could of known. You have fòd in your fridge,a roof over your head and air in your lungs. Your doing great

After sitting, watching, and analyzing her whole story, I genuinely feel terrible for her experience. Home ownership should not be like this. However, I do feel there is some misinformation in this video and (rightfully so) there was a lot of venting her frustrations. With all due respect, she did a lot of things wrong: 1. She bought a condo instead of a freestanding home. Condos rarely ever appreciate, especially at the rate of an actual home. Condos also usually come with a ridiculously high HOA fees, which on top of interest, will wipe away any profits you are hoping to make on a home. 2. She bought the home with an adjustable rate mortgage (ARM) instead of a fixed mortgage. Instead of locking in a super low fixed mortgage for 30 years, she went with an ARM bc the monthly mortgage would be cheaper INITIALLY. She thought she would be saving money by having a smaller mortgage payment the first few years, but this always screws people in the end bc rates always go up. 3. She did not do her due diligence when it came to screening tenants. She most likely did not do a credit check, background check, or call their previous landlord to see that they were making regular payments in their previous home. If she did, she most likely settled with a tenant with a lower than ideal credit score. I never rent to anyone below a credit score of 720. It’s a hardfast rule I never break. I would rather have my place sit empty. Having a shitty tenant is worse than having a shitty condo. They can ruin your life. Worst of all, they can completely take away any future motivation in investing into real estate. Hence, they not only screw you over while they’re living in your home, they’re screwing over your future. In the end, it’s up to you to decide whether you’re a victim or use this as a learning experience. 4. She did not know/expect all the fees involved with buying a home and responsibilities/recurring costs of maintaining a home. Please note, this post/response is not to badger her or put her down. She seems like a very wholesome and hard working person. I hate seeing this happen to people like her. I don’t hold anything against her, because the problem is twofold: 1. She did not have anyone experienced to guide her to make the right decisions and simply do the due diligence or right math 2. She fell into the trap that making money in real estate is “easy” or “the goal” when really it requires a lot of work and maintenance. It’s not as passive as a lot of fake real estate gurus on KZread pretend it to be. Maybe you titled your video “Why you should not buy a home in your 20/30’s” as clickbait, but I would retitle it “Why you should not buy a home in your 20/30’s, if you don’t know what you’re doing.” It can actually be a great experience, although troubling at times. You don’t have to be dual income or have a rich family. For example, I was 29 when I bought my first home in October 2020. It was $1.1M and it now appraises for $1.7M. This isn’t to brag but simply to tell you the opposite side of things. I wasn’t dual income and I do not come from a wealthy family. Both my parents are Asian American immigrants and I’d say we are lower-to-middle class. I had money for the down payment because I lived like a peasant over the past decade. It wasn’t fun by any means. While all my classmates were “living their life” and going on sweet vacations by taking out extra med school loans, I was tutoring, working a second job, not going out to eat or partying, meal prepping all my food, not travel, and lived in the cheapest places. In the last year of my training, I looked every day on Zillow knowing I was going to buy a home. I spent most of my free time learning about different real estate markets (depending on where my future job would be), the process of buying a home, and what things to look for when buying a home(i.e. the do’s and don’ts). Anyways, when I found the perfect home I pounced on it. It had a separate mother in law suite that I could rent out and a giant separate workshed that I flipped into a home gym and 2 offices. Long story short, I am by no means set but now I have a lot more freedom in life and am finally taking my parents on the vacations they deserve. My friends that were “living their life” have nothing to show for it, they are all considered high-income due to their job but bc of their lifestyle choices they’re living paycheck to paycheck and still renting. The past 11 years of my life did suck, but it sucked so my next 50 wouldn’t have to. I was willing to make the sacrifice because I knew I wanted to settle down one day and provide financial stability to both my parents and significant other. I didn’t want the person I ended up with or my kids to go through the things I had to. And yes, it was worth it. This journey taught me the importance of persistence, discipline, and never losing sight of your goal. Nicole, if you are reading this let this bad experience be a good learning experience for you to grow. Make this sour experience into something positive; Make lemonade out of lemons. There is no better teacher in this world than failure. Yes, you did not make the best decision with buying that condo, but you learned a lot of things on the way and I 100% believe you will be better the next time you buy a home.

@ericprieto4348

Ай бұрын

excellant post.... i concur with yr assessment....

@candicetay1420

Ай бұрын

Thank you for sharing

@something3476

25 күн бұрын

Truly insightful. I have one questions. Did you constantly max out your Roth IRA? Or did you put most of your money in a high yield savings account? Because I heard there’s no penalties if you’re a first time home buyer if you decide to withdraw money from this retirement account. I’m 17 years old and one of my main goals is just to pay off student debt and buy a house. I don’t really have any desire to do much aside from educating myself and settling down somewhere.

@rairacavalcanti7173

17 күн бұрын

This comment should be pinned!

@Yu-qx4eo

15 күн бұрын

Thanks for your analysis I learnt a lot from you

Bought home in 2023 at 27 years old for 230k. Now valued at 250k. It’s a rough market but I’m glad I made the push. Also, I do not plan on ever being a land lord to tenants. And I’m sorry that you had to go through all that STRESS. Definitely not worth it personally. I’m also part of the FIRE community. I work long hours and a second job to be financially free. Much love, thanks for sharing.

Thing is, I'd argue that you buying a home so young gave you very important life experience which was worth the investment. It's better to take risks and potentially make mistakes when you're young because like you most likely still have a safety net. Like in your case you were able to move back in with your family. Just going through the home buying process, learning about home maintenance, and even being a landlord, I'd say that's all very valuable experience and very impressive that you can have all of that experience before you are 30. Especially if you are looking into non traditional sources of income, skills you learn from buying a home will be applicable.

There is so much BAD advice and information here. 1. Condos have their own value assessment because there are so many differences in owning a condo or land/house. Fees, utilities, HOA, land fees, etc. Comparing these is like comparing an apple with a banana. 2. You didn't go with a fixed interest rate. This is incredible dangerous because your payments can change drastically. If you are not setup to handle these changes you can be underwater. You condo investment would make sense if you did have a fix interest because 5+ years down the line you would actually make some profit from renting it out. Not owing more. 3. "You should live it up" is a bad way to look at your future retirement planning. No financial advice should be, "go spend your money" unless you are already in retirement. I am not saying not to live it up. You can do both. 4. The "Opportunity Cost" you did with owning a home or investing in stocks seems like you were comparing all the mortgage had been invested. In reality, you need to live (rent) somewhere. And rent prices and continually increased as well. An addition would be once you are "done" with investing or retired, you probably still want to buy a house. You are now in the most expensive market in your lifetime. Purely from inflation like you said. 5. This Robert Shiller guy also sounds like he doesn't know what he is talking about if he said "Technology progress", "Better labor", "New home styles and amenities" will make homes more affordable. Each one of these don't make sense. So far Technology progress has only made homes more expensive with ease of access to housing prices. I don't see robots building homes at mass yet. Better labor is not coming anytime soon and is actually decreasing. A good indication is the SRHINKING POPULATION. "No one wants old homes" is completely false. Investors want older homes to build equity in. FHO want older homes because they are affordable. Hate to be so harsh here but videos like these make me think people have alterative motives to persuade people from not buying a home. Like they are telling everyone else to not buy a house right now and they themselves buy a new house (crash bros like Graham). Something to consider is maybe in the old days, houses were undervalued because the information on investing in property was not so easily available. Since the KZread and finance channels blew up, the market was saturated with property investors. Homes are now priced higher at the point were it doesn't make a solid investment choice now.

@null1808

Ай бұрын

Your right.

@roqonu

Ай бұрын

Condos suck...variable rate interest rates? Also suck. I have to wonder who she got buying advice from? But yes...owning a home to live in will be more labor and dollar intensive than renting...and if you can't accept that as part of the deal...well, that's on you.

@MetalSportsJ

Ай бұрын

Glad you went through the trouble to highlight some of the horrible information provided and give the appropriate insight for those curious. I can't believe this video has the amount of likes and positive comments it does... feedback loop of folks who don't have a proper understanding about these subjects taking advice from those who also don't (including the video creator).

@nattviktoria

15 күн бұрын

Wow, you sound close-minded

@Milnip

15 күн бұрын

​@@nattviktoria My comment probably comes off harsh but I think "You should live it up" is harmful financial advice. I would be wary here. She currently owns a home and is trying to convince others it's a bad idea.

love these tips! as a 19-year-old, this is so helpful it's implied that paying rent is a "waste of money" when honestly after thinking about it, it frees up your time and mental and emotional cost so much!

@Jack-fr9bk

Ай бұрын

It is a waste

@Theaverageazn247

Ай бұрын

@@Jack-fr9bk no its a fixed cost. Owning is fun until it isnt. As someone in texas, Its great to own until you need 15k for AC, roof, foundation, plumbing, or other crap

@Jack-fr9bk

Ай бұрын

@@Theaverageazn247 Nope it's an investment. Better than paying someone else's mortgage.

@espenbrathen7156

Ай бұрын

@@Jack-fr9bk Nicole said in the video she's paying $500 a month in interest. That's how much my whole rent is. It's better for me to just keep renting and invest more of my salary

@zachbeall6810

Ай бұрын

​@@espenbrathen7156 so you either live in the hood or have roommates. If you have roommates you are better off owning a home and renting out rooms.

Bought my first house in 2012.. I was 21. Fast forward 10 years and I was mortgage free. During that time the value of my house quadrupled in price 4x. Had I been renting all of this time, I would still be renting/paying for housing, and my money wouldn't have multiplied 4x...

@mjs28s

Ай бұрын

"...and my money wouldn't have multiplied 4x....." In other words, you wouldn't have been investing less you are putting money in an asset that is not liquid. You also own an "asset" that has constant negative cash-flow. Property taxes, maintenance (typical budget would be 1% of value per year), yard work (if you farm that out), higher utilities, etc. I owned once...and that was enough. Now we rent. Benefit - we can move to where-ever and whenever we want to. We don't have to wait for a home to sell in order to do so or try to carry the note on one home while paying the carry cost on another until it sells. Our assets are 100% liquid and within a few minutes I can turn everything into cash. Turning my assets into cash costs me $0 in commissions, not 6% or sometimes mors of sale price and just even initial listing taking days or a week let alone really getting the marketing, showing, etc going on. When I invest in real estate I do with with stock or etfs, the way to go. Immediately cash-flow positive to my pocket. Don't like how it is performing or a better opportunity comes along, sell one and by another within 30 seconds for $0.

@Bergamot88

Ай бұрын

I dunno man, all I know is I had 40k for a down-payment on a 240k house in 2012. Fast forward to 2022 I sold my house and left Canada with 700k in my back pocket from that sale alone, tax free. I do not know of too many other things that can give me that kind of return on investment. And now I am living in sunny portugal where the cost of living is just a fraction of what things were in Canada (taxes, insurances, utilities, food, healthcare, etc. are all much much cheaper). I have solar panels on my house.. so the power company actually ends having to pay me every month. I am a tradesman, so I have always done all of my own work on my house. The plan now is to buy some other houses throughout the years and rent them out to know-it-alls like yourself.. I mean, why pay my new mortgages when somebody else can be paying them instead, am I right?

@matteojay6052

Ай бұрын

@@Bergamot88 you did a good choice man, same as mine, I bought a lot and contracted a house 6 years ago. With the cost of construction materials now, I would not afford to construct house at this present time.

@powlowful

Ай бұрын

Everything is relative and the devil is in the details. There's too many variables for any ONE person to say their way is better. For example she has a condo and you had a house. You bought your house in 2012 and she bought her house in 2019ish (just before the pandemic). Just with those few details we know that we aren't comparing apples to apples...

@asplmn

Ай бұрын

My wife and I made the decision to not buy. This allowed us to take advantage of high-compensation jobs outside of the Midwest and invest into assets with *much* returns. We’ll buy a property one day knowing that it’s not the most financially-savvy move, but a lifestyle move.

Never do adjustable rates, especially for a home!

A condo always made the most sense for me, because a house is just too much space and I love apartments. I just could never get past the HOA situation. Not to mention the property taxes and everything else. I can respect your decision to make the investment, though. I, personally, made the decision around 2018 that I never plan on buying real estate in the United States. Better to rent and eventually live abroad. I’m 36 and single. In the end, I just cannot trust the economy enough to make such an illiquid investment. Way too much manipulation and crazy laws. Awesome video!

Buying a house vs a condo is not the same thing at all. I recently bought a old house just outside of Montreal and il already appreciated in value after just a few minor cosmetic fixes. A condo doesn't take as much value as a house

@johnnywang206

Ай бұрын

Yep plus she was paying $550 to her HOA. I’m paying $75 to mine and I own a home. I would never buy a condo.

Good video. Relevant topic with points not covered by other channels. Thanks

Your analysis and conclusion are spot on. Kudos on doing a very well research and thoughtful video.

Great vid and glad that you shared this perspective. I'm older and have owned numerous properties as investments. What most didn't understand, is that my residence where I've lived have always been rented, as I see homes as tools that offer many tangible benefits, but not as investments. Homes are valuable because we live in them, not because you think they may go up in value. Appreciate you sharing and hope many are able to learn and make an informed decision.

If I didn’t start my property grind (apartment) in my late 20’s, I wouldn’t be sitting on a house currently in Vancouver. Now Vancouver has just approved building a four plex on my single property. Grind when your young, relax when your older. 😊

@ft9kop

Ай бұрын

i wish we could have more multi-family buildings in America. Everyone here hates density because they believe density will increase traffic, take away their car parking, and bring trashy poor and/or minority into their neighborhood.

I’m glad towards the end you said this was just my experience and not everyone’s. Every point you brought up is valid, but it sounds like you just made the wrong decision for you without having all of the information you needed to make sure it was the right decision. Not sure if a first time home owner could ever though haha. I’m closing on my first home on the 20th! Hope I don’t regret it 😄

Thanks for the vid!

This was an eye opener. Thanks for sharing❤

Thanks for doing this 💖

Your biggest issue in your homeowner experience was going in ill prepared, second issue was buying a home in Canada. I visited Toronto and was so impressed with Canada that I told myself I could see myself immigrating there one day. I figured out that fixed rate mortgage loans are not an option there and I swiftly changed my tune lol. I would rent a nice apartment but I would never purchase a home there if I couldn’t buy cash.

@ericpowell4350

Ай бұрын

Canada isn't a destination of choice anymore. Dig deeper on why.

Renting is not a waste of money, the money goes to me, a landlord, who then uses it wisely for thing like a larger nicer house and vacations for his family. So thank you renters, please keep renting. 😁 Jokes aside, it sounded to me that Nicole just wasn't prepared for homeownership. Buying a home is one of the largest purchase you will make in your life and if you just dive in because you see others doing it and it looks like a really cool thing to do; you're going get into trouble real quick as cost add up. One thing not mentioned in the video, and I think is what ran up the cost for Nicole, is that you should also have a set of tools and know how to use them to make minor home repairs to keep the cost down. IMO homeownership, when properly prepared for and planned, is a good thing and the earlier you start, the better off you will be later. Sure, when you're young you want to do a lot of things, travel the world, go on nice vacations and enjoy life in general. If you have to give all of that up to own a home, then you cannot afford it in the first place.

This is a great informative video. I have been thinking of a condo instead of a single family home and this gives me more information on it. Also, I agree. I think we need to reframe the thought that we NEED a home, young, in order to be SEEN as “successful”. Cheers to the video

bought my home during covid and now its worth almost double, planning to buy another home in 2-3 years and use the equity.

@GiaGarcia-jz6oi

Ай бұрын

Might want to sell now if possible like she mentioned the price is likely inflated at the moment and the actual value is probably much less especially as the market starts correcting it self

@reidspencer

Ай бұрын

@@GiaGarcia-jz6oi why sell now ? everything is overprice atm. i live in calgary.alberta canada. main reason the house prices here is over inflted is because of people moving from other provinces. and even if the prices dropped to 20-40% i still have alot of equity. and if house price drops i will buy another property..

@peacefreedom4930

Ай бұрын

@@reidspencer a house that doubled in value is up 100%. A house that falls 50% is back to the original price. $200,000 + $200,000 = $400,000. $400,000 - 50% = $200,000. So, how will you still have a lot of equity if the market comes down?

@reidspencer

Ай бұрын

@@peacefreedom4930 i put 30% down and made my basement as a rental. you obviously have no idea how real estate work.

Buying a home over the long term is a good investment.

I like how you explain the numbers

You rent for $500 a month in Toronto while you rent your extra tiny room for $800 a month for the first year of ownership? The math isn't adding up.

@Captaine_Crunche

Ай бұрын

your brain isnt braining my guy, she never had a second room in toronto, shes talking about renting out her second room in her condo for 800

@ramirphoto

Ай бұрын

@@Captaine_Crunchebefore she bought her condo, she said she rented for $500 a month. Check the first minute of the video.

@ramirphoto

Ай бұрын

@@Captaine_Crunche1:13 to be exact

@ramirphoto

Ай бұрын

So from renting her own place for $500/month she rented the den of her place for $800-$1000 basically charging almost double than what she was paying when she was a renter within the first year.

@broadestsmiler

Ай бұрын

It seems like she paid rent to live in a place for $500 prior to moving to and paying for her own home. Once she had the home, she subletted one of the rooms in her home for $800.

Fascinating video

Also bought a condo in my 20's and the price went up 50% in 5 years, some locations reached 100% a few years after that. The warning about real estate staying flat for 100 years doesn't factor in location and many people created wealth through real estate. Of course, this was treating RE as stock and it's speculative so I do think a house should be considered only when there are specific usage reasons such as starting a family or hobbies that need the space. House hacking like you did renting out a room is also a valid strategy and can be done without having roommates, e.g. duplex/multifamily style.

I bought 2 houses when I was 22 years old. Im only 24 and Im still purchasing properties to this day. There’s a difference between purchasing a home vs. purchasing investment property. Also if your going to do real estate, I wouldn’t invest in condos. Only if the deal is there. In my opinion, condos are risky. Also real estate is based off local markets… not an overall market. Every market is unique.

I appreciate that you made this video! So many people really do spread the idea that everyone should own a home. And as a fellow young homeowner, I just don’t think that is the case. Am I grateful that I bought a home considering how the market looks now, yes, I am. But that is because I want to have a family and I’m in a long-term relationship. But it’s still a huge financial stressor and something that I don’t think should be taken lightly. Not all homes increase in value the same way… So for example, in my community some homeowners made a poor decision to try and sell once interest rates went up and so those houses were on the market for like 10 months. The value of my house went down by $20,000… 😭😭 The value of my house is just reaching how much I paid for it, 2 years later. And even though I have progressed in my career, I can definitely see how I would’ve been a lot more financially stable in an apartment than in my house.

To determine if renting or buying is better you have to compare irrecoverible cost of housing vs renting. It all depends on renting price. If mortgage payment is as high as renting it probably is wiser to buy. If you can rent for cheap then probably not. I just learned a small calculation to determine this cost and it is around 4-5% of housing price divided by 12 and compare it to renting.

3:12 sounds like you have an ARM. good when rates are going down, but when they go up you have to refinance to lock in a rate

Thank you!

I’m getting ready to buy a townhouse in Edmonton. That market is still undervalued for a major city over 1 million population and also one of the ten fastest growing cities still as well. I live in Ontario where I’ll still rent. I’m buying in that market because the same townhouse here is almost twice as much money and I can rent my property in Edmonton for almost as much as I pay for my rental here. Not owning a property leaves you liable to skyrocketing home and rental prices. You don’t need to live in it but you want to own in just incase

Had a bought a house outside of Montreal 12000sq foot land 3000sq house. It was a good price but sold it in 2019 at a lost. Felt empty followed someone else dream when living in the house. Rented a condo then moved to Vancouver then Toronto. With renting your more mobile and can see if the area city is a good fit for you, with the cost of living increasing faster in Canada than other countries thinking of living else and buy a place with could lead to citizenship in another country.

@SeanIsCrispy

Ай бұрын

If you had that home today you'd probably make a crap ton of money from it now especially with the cost of housing in canada at the moment.

You're a wise young lady making mistakes early is the best teaching for the Future I bought myself a 3 bed 2 bath home as a single man and I feel so goofy at times. Just never lose motivation girl God is Good 🙏🏾

I bought my house in 2022 and it's been a interesting journey. Definitely going to make sure my next payme y stays around 25% or my take home pay

Very nice ❤

Bought my starter home back in 2019 I was 22 greatest investment I could have done plus deciding to go with a starter home instead of the newest home was great learned how to fix stuff and everything that comes with owning a house and saved over 100k since it was an older home now that the market has gone up I’m 3x my initial purchase price and always do 30 year fixed I’m planning to know sell my home and move the profits to a newer bigger house

I bought in 2009. I wanted to buy in 2005 but homes were getting appraised at insane prices. It was a fixer upper and I knew that. I also knew I wasn’t going to transform it immediately. I was going to take my time and make it a home. But it had great bones and I started at a 5% rate and am now at 2.125%. As a single female I’ve also saved because if something happened I’d be the one to fall back on. 6 years in I was diagnosed with breast cancer and then new cells a year later. But thankfully I had enough saved but didn’t have to dip into it. My sisters rent has consistently gone up. Mine has not. I’m able to deduct the interest and property taxes on my taxes. What you make in stocks is paying capital gains taxes. Stocks are good too but it’s different. Just wanted to give a perspective from someone that was 29 that bought a home and enjoyed it. I did it as a single female and don’t have any regrets.

People have drank the kool-aide on buying a house. The real estate lobby made it seem like owning a home is a right of passage.

I went through the same thing when i bought in 2016. The cost to maintain is annoying as hell but with a family n 2 kids there is no chance id wanna be a renter with rising rent cost and maybe being evicted if landlord decides to sell. You did well buying at 23, i made more bad life choices and bought at 31...

I completely agree with her it's not worth it owning a home rn it's to much up keep and the un expected expenses is what gets u

In America we don’t have to worry about the interest rates going up thank goodness. The first year was a nightmare but in my area the apts went up 50k so I got some equity and now I have all my furniture so I can finally say I’m in a good place 😅🤗

I am renting for years now. I am from the Netherlands, and I live in a social rental home. 😂 I am not going to move for a long time. The rent is 650 euro in the month, it is fully isolated, renovated(I got a new kitchen,shower,toilet and heating 6 months ago )next to the station ,small shopping center (with supermarket), doctor, postal office and nature. And because it is social rental, if I lose my job then they automatically lower the Rent to the level what I can afford and it is limited to increasing rental price of 3 % a year. This and last year they did not increase because of the inflation. So the money that I save I am investing now.

@jasxteo

Ай бұрын

Wow what is a social rental house? Never heard of that but it is a very good scheme it seems.

@Johanneslol11

Ай бұрын

@@jasxteo it's a house subsidized by the Dutch government! They are assigning a bunch of houses every year for social rent. And they cover some of the cost of maintenance and so. The market rent should be more then twice as high as I pay.

Don’t forget to write off your stuff also buying a home alone is tough but if you have friends or significant other it’s possible

I 💯% approve this message! I bought a condo in 2008 value dropped 50% and did not come out of water until 2021. I sold in 2021. I got money back but nothing close to what i paid for the house in 12 years. Only buy a home if its right for you and you can see yourself living there for a life time. I purchased a home thinking it was an investment and that i would live ther 5-7 yrs. Boy did i learn a valuable lesson.

As someone who got there first house at 20 and 3 more locally since then while renting them, i can 100+ say that it was worth it during the time i got it which was 14 years ago when house were still rather cheap and havent looked back yet, My parents drilled it into my head that it was one of the best financial safety nets one could ask for more so that we live in a low cost of living state. This last year i made another purchase of 2 more houses in another state for 50k each and have been renting them as well with them returning the amount spent in the next 12 or 13 years. I still keep a good amount of money and anything after they have paid for themselves will be money i use for retirement. The hidden cost is one of things i dont get. a lot of people who a car the bouse is same concept you have to pay reg annually along with insurance and up keep on car. Why are people thinking its not the same thing? Hell how do they think the house has water and power? Sounds like the people who cant comprehend this are the people who just do things without thinking about it

just because some older person says you should own a home doesn't mean it works for your situation here and now. times change. Do proper budgets. before throwing yourself into a "dream"

Eres Muy Bonita..... Great video... you went thru... what we call the school of hard knocks ..when it comes to real estate ownership.... you gotten wiser.... I can tell and you are a young and smart cookie.... I know you are a warrior deep down and you'll just fine. Keep them videos coming. Muchas Gracias !!!

I couldn't pay much attention to what she was saying, Nicole's eye is just wow. Beautiful young lady ♥️ I pay rent and wouldn't buy a house at least here in Australia, people found themselves paying a lot of more money due to inflation coz the government promised that wouldn't happen. You cannot control that, it isn't a matter of if but when it will happen.

??? You have an adjustable rate mortgage? What loan product did you use? FHA? Home values do generally go up, but condos dont normally appreciate as much. The power of rate of return on real estate investing mostly comes from the leverage which you can achieve over the stock market.

I wish this was relatable to the majority of people living in America. Inflation and raising rent has most of us in shambles. But good for you and i mean that sincerely

Hmmm nice insights

Buying a home is like buying a single stock in the sp500. You have to pick the right one

Wow congratulations for your journey 👏🎉🎉✌️✌️🥰🥰❤️❤️😍😍👍👍🙋✌️

Congrats I got mine at 35 in 2022 just got done paying it off asap. Everyone be careful

$500 for rent or over $2000 for owning ….. it is a no brainer. I will be renting a home at your location. Where I am…. Rent is $2500, so i brought a condo and my payments with tax and fees comes to around $2700

That’s why we don’t buys condos. Minimum duplex or single family because of land.

thanks, this makes me think home ownership wouldnt be for me. i havent even kept a job for ten whole years just cuz i change jobs to move up in pay and career. i like the examples of your friends. i def think it's problematic that people see homes as investments rather than places to live in. it's just contributing to housing crisis

So smart and so pretty.

Lol variable interest rate home loans in Canada and UK etc. At least variable interest rates mean the rate is more stable rather than hitting omly people who are buying/selling. Just crazy because canadian housing costs are so high, impact must be huge

Did you get a variable rate loan? I don’t think you would’ve had this problem had you gotten a traditional fixed rate mortgage

I dont think your issue is with owning a home, From what im hearing seems like you made a boat load of mistakes when you bought yours. Home ownership can be very lucrative if you know when to buy, what to buy, who to buy from and what to look out for when buying.

I don't want to pay someone else's house payments for them, if I gotta pay either way, I'd rather it be for myself.

Bought mines in feb 2020 been a ride also im a landlord as well

You have no idea, how lucky you are to have a home. Especially you got it in a good time. You should have made money on paper. I bought mine in Toronto, 3 years back. If I were to rent the same house, I would have to pay more including all my housing cost. Plus I can reng my basement and get additional 2k per month.

On my own journey to become a millionaire at 30, hopefully within the next 5-10 years. Starting from $0 ... WE CAN ALL DO IT

Big 🎩 I rather keep up with inflation than to help someone else keep up with inflation.

Correction, instead of you think you earned something, better to say that you are on par with inflation. You did not lose to inflation.

Condo is more comparable to an apartment than a home with land.

I bought myself a cheap mobile home instead of a house...

For major cities with rent control, it is cheaper to rent. However, once your rent reaches half of market rent, there is high chance of being evicted especially with some cities like Vancouver where rent can go up 10-20% a year. Primary residences are often protected during bankruptcy and other proceedings so if things do not work out, at least a place to live in especially old age when one has fixed income (interviews with homeless seniors regrets were either not buying a home or losing their home and ending up unhoused). You don't want to overleverage yourself buying a home to the point where one only works and saves money becoming home bodies and often relationships break down because of it. There is a balance between work, home ownership and living life as time can pass quickly and there is always a chance something happens good or bad like a major illness or disability. Home is a leveraged asset. Usually, the expectation is that it goes up similar to inflation. Also cities are adding higher and higher development fees for new homes paying for schools, and infrastructure to not have broad high property tax increases, compounding the higher labor and material costs so building costs for new homes will always increase. For condos, the real costs increases quickly after the 5 year costs increase. With greater costs more people are living in rented condo units with 3-4 students in one bedroom condo or 5-6 students in 2 bedroom condo to share costs and this leads to more common area usage for a condo building. Replacements which should happen 20-25 years are happening at the 10-15 year mark with greater use and sometimes lower quality build material leading to special assessments. The reserve funds are often too low means special assessments. Condo contracts are also getting more complex with gym condo, security previously bought by developer is now annual rental contract, freehold land now is registered air parcel and this leads to much greater costs later. Whether homes increase or decline in price, it would still be a place to live for you without risk of eviction. If prices increase, then one has to sell to realize the gains. For major cities, one would not expect housing costs to be 28% or lower. There are people in Vancouver or Toronto who pay 40-50% of their income towards rent. This becomes a cycle where most of salary goes to food, and rent leading to not enough money saved for down payment.

550 condo fees is crazy omfg

mistake i bought my house went i was 23 and sold it at loss after 9 years back in 2000

With inflation continue to rise. Buying a house or invest in real estate a good investment.

Analysis of housing isn’t 100% accurate. Parents house bought in 1970’s for 45K sold it in 2010 for 700K They did better in real estate than anything else. (They had multiple rental properties as well and rental rules weren’t as horrendous as they are today) I do agree that buying a home is not for everyone and there is such a thing as buying at the wrong time in your life. This is why I believe that it’s a personal decision. The issue in Canada is that everything went up with inflation but Salaries did not keep up with the inflation. Example when I graduated, 30K was average salary, 44K was considered decent. Houses were 240-400K so say roughly 10X your income to buy a house. Today salary starts are 44K average 67K house average 1.1 to 1.3 Million which is between 18-20 times your income. My parent’s era income to housing was 4 to 6 times. So clearly with that, the numbers are not working, it’s broken. (My figures are based out of Toronto, since that is where I live, I don’t know Vancouvers info, so can’t speak to whether or not it’s the same)

@itsnicolesyk

Ай бұрын

I'm not disagreeing with the possibility that you can profit off of real estate - there were people who got lucky, and/or got in at good timing and I know peeps who have actually sold off earning good money (after inflation). But a lot of that was because of the housing bubbles that happened during 2000s and even a few years ago back in '16. The graph I shared was from Robert Shiller's work which is based in the United States so I can't say for sure it's applicable in Canada, but our economies are usually tied. And if real estate worked out well for your parents and they're happy, that's awesome! It's just that most people don't consider in all the costs, inflation and even opportunity costs (i.e., investing in stocks, mental health, etc.) when considering their real estate returns.

@johnpapalonishow

Ай бұрын

Absolutely! From 2008 until today the USA has been quite different from Canada. Not necessarily in a good or bad way, just slightly different. Canada doesn’t fluctuate as much as the states do. With the same token we don’t get hit as hard either. In this market I believe (speculatively) Canadians will get hit harder as our mortgages are up for renewal and the 2.4% to 5.5% raise is inevitable. In the states if they took a 30 year amortized mortgage they keep the 2.4% until the house is paid, there’s no 5 year renewals. So unless they have to move or sell for other reasons they just have to stay put and nothing changes for them. I am not naive to believe that they have it perfect right now, many people over leverage themselves to begin with and keeping the interest rate won’t save them since they over paid to begin with. I am speaking generally. Everyone in Canada will be affected (that has a mortgage) where the states only those who over leveraged or need to move. In terms of stocks i see them as going to the casino and hope for the best, but that’s my perspective and experience. Doesn’t mean I am right or wrong. In the end people have to decide what is right for them in their current stage of life and it will change as we get older. Maybe for a 20 year old there’s better options than a house being that the typical 20 year old isn’t financially stable and generally has not planted their feet into any career. They’re typically exploring to see what’s best for them. Definitely not the time to get into a long term commitment such as housing. If someone is looking to build a family, stay somewhere long term then it may be a good option. Ps. Thanks for putting out this video, I generally like seeing other people’s perspectives as I believe that I can’t know everything and seeing things differently is an opportunity for growth and learning.

@AnimeBeefRandoms

Ай бұрын

You have to account for leverage too. Leverage multiplies your returns as well as your losses. For example, if you put a 5% downpayment you have a 20x leverage, meaning if home prices go up (or down) 1% you gain a 20% return (or loss) on your money.

Interesting point you brought up that investment in homes doesn’t generate as much return as invest in sp500. But I see all rich ppl owned/ invested in real estate But i do agree that investing in sp500 give an easier return without headache and extra work

@VivaciousLyla

Ай бұрын

yeah i was wondering what incentive they may have. could be just building up their social capital? like to impress their rich friends and maintain relationships with the wealthy

@SeanIsCrispy

Ай бұрын

Both stocks and Real Estate are driven by inflation. You just have to know what to buy, when to buy and sell. The rich understand this and exploit it.

@neolion8150

Ай бұрын

It’s called leverage. Example $50k on s&p or use 50k deposit on 500k investment property. Both return 10%. S&P = $5k House = $50k profit. Probably don’t take financial advice from this girl. Pretty face don’t mean she knows what she’s talking about. Can use her track record as an example.

@SeanIsCrispy

Ай бұрын

Both the Stock Market and the Real Estate market are influenced by inflation. The rich usually know or hire someone who knows how to exploit this system for their benefit.

@mjs28s

Ай бұрын

@@neolion8150 Ok, but not every house in every area goes up in value. You can also lever equity investments, FYI. But ok, compare two things from two completely different perspectives. "It’s called leverage. Example $50k on s&p or use 50k deposit on 500k investment property. Both return 10%. S&P = $5k House = $50k profit. " Also, what assumptions are you making there? That you put $50,000 down on a $500,000 property and never put another dime into it? Yeah, that's realistic. What a made up mess of an argument.

This video is to teach people about poor preparation and knowledge before purchasing housing. If you’re living in it, then it’s not an investment. Look into HOA, insurance and fees before purchasing. Know why you’re purchasing and if it’s because of outside people then it’s most likely not a wise decision!

why are you getting an adjustable rate mortgage? and the idea isn't to buy a house that quadruples your living expenses. To make it a good "investment" you are supposed to get a home with a cost that would be fairly similar to the cost of renting.

Condos and homes are very different… you have no say of the land that the condo is on.

It’s a forced saving plan for a lot of people that are not disciplined enough to accumulate wealth or even emergency savings. Most can’t save through retirement or investments accounts but lots of people I know don’t even save while earning more than 6 figures

This is a great analysis. Are you Chinese? I have found that all of my Chinese friends are obsessed with real estate, but for the reasons you outlined, it isn’t as good of a deal as the S&P500.

Did you refinance at lower rates

I bought my home last year and I'm paying $1000 a month in interest. Took on two roomates and now I'm back totally he lifestyle I had in my 20s. So lame.

If you buy a home and pay it off at the age of retirement, you will not have much living expense VS renting your whole life and getting to the end realizing you didnt make the right investments. NOW you're 60 years old and still paying rent when you could of had a paid off mortgage. Just saying not many people can rent + make equivalent investments. I think buying a home will be wayyy better than not.

A home is generally a bad investment. Its more of a luxury item so its better to rent. Unless you already have 100s of thousands of dollars if not millions saved/invested then I would never consider a home. Still a bad thing to get, but much more justifiable at that point.

Made it to 34 seconds and heard "share my truth". Look...you can share "my experience" or you can share "the truth". The truth is just the truth. There is no personal truth. I cannot take anyone's opinions about anything seriously when they say this.

Not everyone can start that early. I have 10 rentals before the age of 30 and it has been a blessing

OMG, no you did not get an adjustable-rate mortgage! Please tell me you didn't.

@KentH200

Ай бұрын

I was just about to say the same thing. Fixed loan would have saved her money

@itsnicolesyk

Ай бұрын

I'm not sure how it works in other countries, but in Canada, fixed loan rates are a lot higher than average. Common interest rate terms (either fixed or variable) are between 3-5 years. How does it work in your country?

@infinitexps

Ай бұрын

@itsnicolesyk Oh okay, I'm a new subscriber and didn't know you were in Canada. I'm in the US and variable adjustable rate mortgages were a big cause of the financial crisis of 2008. It's now known as a poor financial decision for someone to get one as opposed to getting a fixed-rate loan here.

@myafrosheen

Ай бұрын

​@@itsnicolesykbasically the same as how it is in the UK with 2-5 year fixed rates and then you remortgage

@IWantALeatherBag

Ай бұрын

Exactly, when rates are low we should always go for fixed rate, and when it's high like right now, variable

monthly housing cost lower than 28% of gross monthly income? that is a very unlikely goal

Wait, you can't / didn't lock in your interest rate?

@AnimeBeefRandoms

Ай бұрын

in Canada you can only lock in for 5 years max at a time unlike in the US.

Getting qualified for a housing loan but being able to pay for the loan are to different thing.

Hey I bought a land before Covid it’s stupid cheap, even tough now I’m still rent apt it cost me only $500 for everything at least I own a land that I can build later 😊

@hmanggala

Ай бұрын

The land it self only cost me $10k

you paid more when rates went up because you didn't have a fixed rate. that's why

As someone who bought a condo in Toronto Canada and pay 4500 in mortgage a month, I don’t relate 😂

so now we have to own a house and renting it for more is the only way to keep up ? just shoot me